Patisserie Valerie has been rescued by private equity firm Causeway Capital, saving 2,000 jobs.
Ireland’s Causeway Capital agreed to buy the struggling bakery chain from administration, valuing the firm at £13 million.
Causeway Capital’s Matt Scaife said: “Patisserie Valerie is a heritage brand, much loved by its loyal customers. This investment should mark the end of a turbulent period for customers and suppliers alike. We are delighted to partner with the team and look forward to helping the business return to growth.”
Patisserie Valerie’s new chief executive Steve Francis also commented: “We are delighted to welcome Causeway Capital as our partners in Patisserie Valerie, ending a disruptive period of uncertainty for the business. The affection and loyalty for the brand among our customers and employees, and Causeway Capital’s enthusiasm and support for the business, creates for us the foundations for an exciting future for the business. ”
Last year proved a turbulent year for Patisserie Valerie, after the uncovering of a series of “accounting irregularities” plunged the chain into disarray.
The chain fell into administration in January after it failed to reach an agreement with lenders.
KPMG had been appointed to handle the process, announcing the closure of 71 locations and the loss of 902 jobs.
Mike Ashley’s Sports Direct had originally tabled an offer of £15 million for the chain, but KPMG rejected it.
The Serious Fraud Office is currently investigating Patisserie Valerie’s former finance director Chris Marsh over the allegations of “accounting irregularities”.
Patisserie Valerie was founded back in 1926, making it almost 100-years old.